Smiths Interconnect Acquires TRAK And TECOM

London -- Smiths Interconnect today completed the acquisition of TRAK Microwave and TECOM Industries, designer and manufacturer of microwave subsystems, antennas, and related components, for $111.5 million from Veritas of New York. Smiths Group initially announced that it was acquiring the businesses in late April 2004.

TRAK operates from facilities in Tampa, Florida and Dundee, Scotland while TECOM operates from Thousand Oaks, CA. Founded in 1960 as TRAK Microwave, the business developed with the acquisition of TECOM and TRAK Europe, before being acquired by Veritas. With 425 employees and 2003 turnover of $71 million, the businesses bring a portfolio of world class microwave components and sub-systems that are complementary to the current Smiths Interconnect range of industry leading products.

Stephen Phipson, managing director of Smiths Interconnect, commented: "We are very pleased with these acquisitions. TRAK and TECOM both have excellent reputations and a heritage of innovation. Combining these attributes with the existing resources of Smiths Interconnect will enable us to expand our product offering in the microwave technology sector and provide a better service to our customers."

TRAK is a market leader in two key technologies: frequency sources for high reliability space and applications and ferrite components to isolate or combine microwave signals for military communication systems. TECOM specializes in rugged antennas for military and airborne applications. With complementary technologies, TRAK and TECOM serve adjacent markets to Smiths Interconnect enabling resources to be combined to deliver opportunities in creating value in the business and for customers.

Sales to governments, or to projects whose ultimate customers are government agencies, account for over half of the businesses' revenues, principally US defense projects, unmanned vehicles and avionics applications. Significant defense customers include Raytheon, BAE Systems, Northrop Grumman, Harris, and Boeing. The businesses also enjoy good positions on commercial projects with major customers such as Nokia, Motorola, and Ericsson.

Phipson added: "These are exciting opportunities for Smiths Interconnect. Looking to the future, we will continue to anticipate the future needs of our customers, developing new niches through organic growth and seeking relevant investment opportunities to enhance our competitive position."

Source: Smiths Interconnect